Sangamo BioSciences Reports Third Quarter 2013 Financial Results

       Sangamo BioSciences Reports Third Quarter 2013 Financial Results

Recent Financing Enhances Cash Position

PR Newswire

RICHMOND, Calif., Oct. 23, 2013

RICHMOND, Calif., Oct. 23, 2013 /PRNewswire/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported third quarter 2013 financial results and
accomplishments.

(Logo: http://photos.prnewswire.com/prnh/20130102/SF35903LOGO)

For the third quarter ended September 30, 2013, Sangamo reported a
consolidated net loss of $6.1 million, or $0.11 per share, compared to a net
loss of $5.8 million, or $0.11 per share, for the same period in 2012. As of
September 30, 2013, the Company had cash, cash equivalents, marketable
securities and interest receivable of $133.1 million.

Revenues for the third quarter of 2013 were $5.7 million, compared to $4.9
million for the same period in 2012. Third quarter 2013 revenues were
generated from the Company's collaboration agreements with Shire AG (Shire)
and Sigma-Aldrich Corporation, and research grants. The revenues recognized
for the third quarter of 2013 consisted of $4.8 million in collaboration
agreements and $0.9 million in research grants, compared to $4.2 million and
$0.7 million, respectively, for the same period in 2012.

The increase in collaboration agreement revenues was primarily due to the
Company's collaboration and license agreement with Shire established in
January 2012. Pursuant to the agreement, Sangamo received an upfront payment
of $13.0 million, which is being amortized on a straight-line basis over the
initial six-year research term, of which the Company recognized $0.5 million
as revenue for the third quarter of 2013. Sangamo also recognized $4.0 million
of revenues related to research services performed under the collaboration
agreement with Shire in the third quarter.

Research and development expenses were $8.7 million for the third quarter of
2013, compared to $7.6 million for the same period in 2012. General and
administrative expenses were $3.2 million for the third quarter of 2013,
compared to $3.1 million for the same period in 2012. The increase in research
and development expenses was primarily due to increased external expenses
related to our preclinical programs, partially offset by lower clinical
expenses for our SB-728-T HIV /AIDS program.

Total operating expenses for the third quarter of 2013 were $11.9 million,
compared to $10.7 million for the same period in 2012.

Nine Months Results

For the nine months ended September 30, 2013, the consolidated net loss was
$18.5 million, or $0.34 per share, compared to a consolidated net loss of
$18.8 million, or $0.36 per share, for the same period in 2012. Revenues were
$17.3 million for the nine months ended September 30, 2013, compared to $12.7
million for the same period in 2012. Total operating expenses were $35.8
million for the nine months ended September 30, 2013 compared to $31.6 million
for the same period in 2012.

Recent Highlights

  oClosing of $74 Million Public Offering of Common Stock. On September 23,
    Sangamo closed an underwritten public offering of 6,100,000 shares as well
    as 915,000 additional shares of its common stock pursuant to the full
    exercise of the over-allotment option granted to the underwriters. The
    shares were sold at the public offering price of $10.58 per share, the
    closing price of the stock on the date immediately prior to pricing. The
    aggregate net proceeds from the offering were $69.5 million, after
    deducting underwriting discounts and commissions and other offering
    expenses.
  oPresentation of Clinical Data at ICAAC Demonstrating Sustained Functional
    Control of Viremia in HIV-Infected Subjects Treated With SB-728-T. The
    data, from its ongoing Phase 2 clinical trial (SB-728-902 Cohort 5) to
    evaluate a single infusion of Sangamo's novel ZFP Therapeutic^®,
    SB-728-T, demonstrate functional control of the virus at or below the
    limit of quantification (LOQ) in CCR5 delta-32 heterozygote HIV-infected
    subjects. The abstract was selected as a "late-breaker" presentation at
    the 53rd Interscience Conference on Antimicrobial Agents and Chemotherapy
    (ICAAC). The data demonstrate that viral load (VL) became undetectable
    during a treatment interruption (TI) from antiretroviral therapy (ART) in
    three of seven evaluable CCR5 delta-32 heterozygote HIV-infected subjects,
    including two of six subjects that had completed TI in the ongoing
    SB-728-902 Cohort 5 study and an additional subject from an earlier Phase
    1 clinical trial of SB-728-T. In one SB-728-902 Cohort 5 subject, VL
    remained undetectable for seven weeks, to the last measurement taken prior
    to the presentation. Reduction in VL from peak during TI showed a
    statistically significant correlation (p=0.015) with estimated numbers of
    engrafted ZFN modified cells (SB-728-T) in which both copies of the CCR5
    gene had been disrupted (biallelic modification), in line with previously
    presented data from this program. Data were also presented demonstrating
    depletion of the HIV viral reservoir in SB-728-T treated subjects in
    cohorts 1-3 of the SB-728-902 study.
  oAcquisition of Ceregene, Inc. On October 1, Sangamo completed the
    acquisition of Ceregene, Inc., a privately held biotechnology company
    focused on developing adeno-associated virus (AAV) gene therapies. Under
    the terms of the agreement, Sangamo issued 100,000 shares of Sangamo's
    common stock to the stockholders of Ceregene and also agreed to make
    certain contingent earnout payments based upon revenues generated from the
    license or sales transaction of certain existing products of Ceregene.
    Sangamo received over 120 issued, pending or in-licensed patents, access
    to GMP master cell banks, materials and manufacturing know-how, as well as
    a database of preclinical efficacy and toxicology studies and other
    documentation supporting Ceregene's Investigational New Drug (IND)
    applications. In addition, Sangamo acquired Ceregene's preclinical and
    clinical therapeutic programs including its ongoing double-blind,
    placebo-controlled Phase 2 trial to evaluate its NGF-AAV (CERE-110) in
    Alzheimer's disease and the proprietary needle device for brain delivery
    of AAV.  The Company does not expect the acquisition, including the
    ongoing Phase 2 clinical trial, to have any impact on its financial
    guidance regarding 2013 operating expenses or yearend cash.
  oNotice of Allowance for New Patent Application Covering Genome
    Modification Technology. On August 14, Sangamo announced  that the United
    States Patent and Trademark Office (USPTO) had issued a Notice of
    Allowance for the U.S. patent application (US 20110301073) entitled "Novel
    DNA-binding Proteins and Uses Thereof." The claims cover core
    architectural aspects of engineered Transcription Activator-Like
    Effectors, or TALEs, which enable these proteins to be useful in potential
    therapeutic applications of genome editing or gene regulation and for the
    efficient use of the technology in biomedical research and plant
    applications.
  oPublication of First Demonstration of Inactivation of Extra Chromosome
    Responsible for Down Syndrome. On July 17,  Sangamo announced the
    publication of groundbreaking research using zinc finger DNA-binding
    protein (ZFP) technology to insert a gene that permanently "silences" the
    extra copy of chromosome 21, which is the root cause of Down syndrome
    (DS). This advance, accomplished in induced pluripotent stem cells (iPSCs)
    derived from DS patients, provides a model to study the basic biology of
    DS which may enable the development of drugs that can potentially
    rebalance the cellular processes and pathologies that are impacted by this
    disorder.

Financial Guidance

  oCash and Investments: Subsequent to its recent public offering of common
    stock, Sangamo expects that its cash, cash equivalents and marketable
    securities will be at least $125 million at the end of 2013, inclusive of
    research funding from Shire but exclusive of funds arising from any
    additional new collaborations or partnerships, or other new sources.

The Company reiterates its earlier guidance as follows:

  oRevenues: Sangamo expects that revenues will be in the range of $20 to $24
    million in 2013, inclusive of research funding from Shire.
  oOperating Expenses: Sangamo expects that operating expenses will be in the
    range of $46 to $50 million for 2013.

Conference Call

Sangamo will host a conference call today, Wednesday, October 23, 2013, at
5:00 p.m. ET, which will be open to the public. The call will also be webcast
live and can be accessed via a link on the Sangamo BioSciences website in the
Investor Relations section under "Events and Presentations"
http://investor.sangamo.com/events.cfm. A replay of the webcast will also be
available for two weeks after the call. During the conference call, the
company will review these results, discuss other business matters, and provide
guidance with respect to the rest of 2013.

The conference call dial-in numbers are 877-377-7553 for domestic callers and
678-894-3968 for international callers. The passcode for the call is
79054132. For those unable to listen in at the designated time, a conference
call replay will be available for one week following the conference call, from
approximately 8:00 p.m. ET on October 23, 2013 to 11:59 p.m. ET on October 30,
2013. The conference call replay numbers for domestic and international
callers are 855-859-2056 and 404-537-3406, respectively. The conference ID
number for the replay is 79054132.

About Sangamo

Sangamo BioSciences, Inc. is focused on research and development of novel
DNA-binding proteins for therapeutic gene regulation and genome editing. The
Company has ongoing Phase 2 and Phase1/2 clinical trials to evaluate the
safety and efficacy of a novel ZFP Therapeutic® for the treatment of HIV/AIDS.
As part of its recent acquisition of Ceregene Inc., Sangamo acquired a
fully-enrolled and funded, double-blind, placebo-controlled Phase 2 trial to
evaluate NGF-AAV (CERE-110) in Alzheimer's disease. Sangamo's other
therapeutic programs are focused on monogenic diseases, including hemophilia,
Huntington's disease and hemoglobinopathies such as beta-thalassemia and
sickle cell anemia. Sangamo's core competencies enable the engineering of a
class of DNA-binding proteins known as zinc finger DNA-binding proteins
(ZFPs). Engineering of ZFPs that recognize a specific DNA sequence enables
the creation of sequence-specific ZFP Nucleases (ZFNs) for gene modification
and ZFP transcription factors (ZFP TFs) that can control gene expression and,
consequently, cell function. Sangamo has entered into a strategic
collaboration with Shire AG to develop therapeutics for hemophilia,
Huntington's disease and other monogenic diseases and has established
strategic partnerships with companies in non-therapeutic applications of its
technology including Dow AgroSciences and Sigma-Aldrich Corporation. For more
information about Sangamo, visit the company's website at www.sangamo.com. 

ZFP Therapeutic^® is a registered trademark of Sangamo BioSciences, Inc.

This press release contains forward-looking statements regarding Sangamo's
current expectations. These forward looking statements include, without
limitation, references to anticipated yearend cash and investment balance,
operating expenses and revenue, the research and development of ZFP TFs and
ZFNs, clinical trials and therapeutic applications of Sangamo's ZFP technology
platform, achievement of research milestones and objectives, strategic
partnership and commercial license agreements with collaborators, presentation
of data from research collaboration, expected timing for clinical trial data,
recognition of revenues under collaboration agreements and the eligibility to
receive milestone and other payments under collaboration agreements. These
statements are not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict. Factors
that could cause actual results to differ include, but are not limited to, the
early stage of ZFP Therapeutic development, uncertainties related to the
timing of initiation and completion of clinical trials, whether clinical trial
results will validate and support the safety and efficacy of ZFP Therapeutics,
and the ability to establish strategic partnerships. Further, there can be no
assurance that the necessary regulatory approvals will be obtained or that
Sangamo will be able to develop commercially viable gene based therapeutics.
Actual results may differ from those projected in forward-looking statements
due to risks and uncertainties that exist in Sangamo's operations and business
environments. These risks and uncertainties are described more fully in
Sangamo's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as
filed with the Securities and Exchange Commission. Forward-looking statements
contained in this announcement are made as of this date and Sangamo assumes no
obligation to update the forward-looking information contained in this press
release.

SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
                        Three Months Ended         Nine Months Ended
                        September 30,               September 30,
                        2013            2012          2013         2012
Statement of Operations
Data:
Revenues:
Collaboration           $    4,825  $   4,190   $ 15,065    $  9,665
agreements
Research grants         882             717           2,199        3,058
 Total revenues       5,707           4,907         17,264       12,723
Operating expenses:
Research and            8,703           7,570         26,201       22,427
development
General and             3,163           3,139         9,595        9,125
administrative
 Total operating      11,866          10,709        35,796       31,552
expenses
Loss from operations    (6,159)         (5,802)       (18,532)     (18,829)
Interest and other      14              12            52           43
income, net
Net loss                $   (6,145)   $  (5,790)   $(18,480)    $(18,786)
Basic and diluted net   $    (0.11)  $   (0.11)  $  (0.34)  $  (0.36)
loss per common share
Shares used in
computing basic and     54,786          52,768        54,013       52,664
diluted net loss per
common share
Selected Balance Sheet Data:
                        September 30,   December 31,
                        2013            2012
                        (Unaudited)
Cash, cash equivalents,
marketable securities   $  133,120     $  76,321
and interest receivable
Total assets            140,366         82,533
Total stockholders'     126,141         64,896
equity

SOURCE Sangamo BioSciences, Inc.

Website: http://www.sangamo.com
Contact: Sangamo BioSciences, Inc., Elizabeth Wolffe, Ph.D., 510-970-6000,
x271